BlockBeats News, June 23rd, Bitcoin mining firm Hut 8 has agreed to pay $2.35 million to settle a securities class action lawsuit brought by investors. The lawsuit alleged that Hut 8 made misleading disclosures regarding transaction-related operational risks and issues during the 2023 merger with U.S. Bitcoin Corp.

The lawsuit focused on power and network connection issues at the King Mountain Bitcoin mining project in Texas, USA. Investors claimed that Hut 8 overstated the merger's benefits and did not adequately disclose related operational risks. Under the settlement agreement, Hut 8 does not admit to any wrongdoing or liability.

Documents show that the $2.35 million settlement amount represents approximately 19.6% of the plaintiffs' estimated maximum recoverable loss of $12.08 million. The settlement is still subject to final court approval.